Key Takeaways
- Amazon is phasing out its cashier-less "Just Walk Out" technology from Fresh grocery stores in the U.S. after seven years.
- The program allowed customers to check in with a credit card, mobile app, or Amazon One palm reader, grab items, and leave without checking out.
- Reports indicate that the technology required human review for about 700 out of every 1,000 sales in 2022.
- Amazon is replacing the technology with "Dash Carts" that keep track of what shoppers pick out and show a running total as they move through the store.
- Smaller Amazon stores and U.K. grocery stores will still have Just Walk Out technology.
News Content
Amazon is removing its cashier-less "Just Walk Out" technology from Fresh grocery stores in the U.S. after reports revealed that a significant portion of transactions required human review despite being marketed as AI-driven. The system allowed customers to check in, grab items, and exit without going through a traditional checkout process. Amazon refuted the claims and stated that the human review was only necessary in a small minority of cases.
Instead of "Just Walk Out," Amazon will introduce "Dash Carts" that track shoppers' selections and display a running total as they move around the store, still enabling them to skip the checkout line. Smaller Amazon stores and U.K. grocery stores will retain the Just Walk Out technology. The company had initially marketed Just Walk Out as a blend of computer vision, sensors, and AI, with no mention of human review, emphasizing customer trust and privacy.
The decision to phase out Just Walk Out indicates a shift in Amazon's cashier-less technology strategy, as it focuses on alternative solutions. As of September, Just Walk Out was available at over 70 Amazon stores and 85 third-party stores in the U.S., U.K., and Australia.
Analysis
Amazon's removal of its cashier-less "Just Walk Out" technology from Fresh grocery stores in the U.S. has been prompted by reports of a significant reliance on human review, contradicting its AI-driven marketing. This could be attributed to the limitations of the AI system and potential technical challenges. In the short term, the shift to "Dash Carts" may offer a more reliable alternative, but it could generate skepticism among customers and impact trust in AI technology in the long term. Amazon's decision indicates a strategic pivot towards alternative solutions and may lead to reevaluation of their cashier-less technology across various store formats, potentially reshaping the future of retail technology.
Do You Know?
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Cashier-less "Just Walk Out" Technology: This refers to a system developed by Amazon that enables customers to enter a store, select items, and exit without having to go through a traditional checkout process. The technology was marketed as being AI-driven and relied on computer vision and sensors to track customers' purchases, with the promise of no human intervention. However, recent reports revealed that a significant portion of transactions required human review, despite the initial AI-driven marketing.
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Dash Carts: Amazon's introduction of "Dash Carts" as an alternative to the Just Walk Out technology. These smart shopping carts track shoppers' selections and display a running total as they move around the store, enabling them to skip the traditional checkout line. This represents a shift in Amazon's cashier-less technology strategy following the decision to phase out the Just Walk Out technology in its Fresh grocery stores in the U.S.
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Amazon's Technological Strategy Shift: The decision to phase out the Just Walk Out technology from Fresh grocery stores in the U.S. signifies a change in Amazon's approach to cashier-less technology. This change suggests a redirecting of focus towards alternative solutions and may have implications for the adoption of similar cashier-less technologies in the future.